With a loan of EUR 100m to Sorin SpA, the EIB has entered into its first agreement in Italy under the Risk Sharing Finance Facility (RSFF), a joint EIB/Commission initiative aimed at increasing the resources available for projects in the fields of innovation and research.
The Sorin Group, of which Sorin SpA is the parent company, is the largest European company in the cardiovascular sector and a world leader in medical technologies for cardiac surgery, areas in which it is active at all levels (research, design, production and sales). The EIB loan will serve to finance Sorin’s research and development (R&D) activities during the period 2007-2009.
The Risk Sharing Finance Facility, which comes under the EU’s Seventh Research Framework Programme, will partly cover the financial risks borne by the Bank when financing these activities. The EUR 1bn capital contribution from the Framework Programme and the EIB aims to attract EUR 10bn in additional financing for the research, development and innovation (RDI) sectors.
Following the signature of the RSFF agreement with the Commission on 5 June 2007, the EIB has already concluded contracts under this facility for a total of EUR 359m in Spain, Austria and Germany. The sectors concerned include solar and other forms of renewable energy, automotive research and biotechnology.
Note to editors
The European Investment Bank is the financing institution of the European Union (EU) and supports its strategic and policy objectives by making long-term loans available for economically viable capital investment projects.
The EIB’s shareholders are the EU’s 27 Member States, represented by their respective Finance Ministers, who are the Bank’s Governors.
More than 90% of EIB lending takes places within the European Union. Outside the EU, the EIB also operates under the mandate and using the budgetary resources of the Union.
In 2006, the EIB lent EUR 45.7bn, of which EUR 39.8bn went to EU countries. Lending in Italy amounted to EUR 5.161bn.
At end-2006, the Bank’s outstanding loans amounted to EUR 339.9bn, funds raised on the capital markets for its financing activities came to EUR 48.1bn and outstanding borrowings totalled EUR 296.4bn.
Owing to its solid financial structure and sound loan portfolio, the EIB enjoys a AAA credit rating, enabling it to raise funds on the capital markets at the keenest terms. The Bank passes on these favourable terms to its borrowers, with only a small mark-up.
As a complementary source of finance, the EIB can cover up to 50% of a project’s total investment cost. The EIB’s goal is to facilitate the establishment of a finance plan tailored to the characteristics of the proposed project in partnership with other banks and financial institutions.
EIB loans can supplement local, regional, national and Community budget resources. Where EIB finance is combined with EU grants, the authorised ceiling for covering the investment cost of projects rises to 70% (up to 90% for projects located in the EU’s Objective 1 regions).